Iron ore price declines again

The price of iron ore sunk to a new six-year low last night.

Benchmark iron ore for immediate delivery in China was last trading at $US58.00 a tonne – a low not seen since the midst of the global financial crisis.

This marks an 11 per cent fall by the commodity during the last 11 days of trade.

News of more iron ore pain led to investors ditching stocks yesterday.

FMG was down 10 cents to $2.14, Atlas Iron down 5 cents at 15 cents, and BC iron down 4 cents to 40 cents.

The price crash has been blamed on decreasing demand out of China coupled with a surplus in the amount of iron ore being produced globally.

Rio Tinto said the oversupply will continue for the rest of the decade and lead to the exit of high-cost producers.

"The continued ramp-up of committed supply is expected to once again exceed the growth in iron ore demand in 2015," the miner said in its annual report.

 

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